BEIJING (AP) \u2014 Asian stocks followed Wall Street lower Friday as fears spread that U.S. interest rate hikes to fight inflation might stall economic growth.<\/p>\n\n\n\n
Shanghai, Hong Kong, Seoul and Sydney declined. Tokyo edged higher as trading resumed after a holiday.<\/p>\n\n\n\n
Wall Street\u2019s benchmark S&P 500 index plunged 3.6% on Thursday for its biggest one-day loss in two years as optimism that drove the previous day\u2019s rally evaporated.<\/p>\n\n\n\n
Investors worry about whether the Federal Reserve, which raised its key interest rate by a half percentage point on Wednesday, can cool inflation without tipping the slowing U.S. economy into recession. Traders were temporarily encouraged by chairman Jerome Powell\u2019s comment that the Fed wasn\u2019t considering even bigger increases.<\/p>\n\n\n\n
\u201cClearly, investors had second thoughts about the so-called \u2018dovish hike\u2019 from the Fed,\u201d Rob Carnell of ING said in a report. The likelihood is \u201crate hikes coming thick and fast, but little if any prospect of a turn in inflation any time soon.\u201d<\/p>\n\n\n\n
The Shanghai Composite Index fell 1.6% to 3,019.11 and Hong Kong\u2019s Hang Seng plunged 3.6% to 20,051.61. The Nikkei 225 in Tokyo added 0.9% to 27,053.81.<\/p>\n\n\n\n
The Kospi in Seoul tumbled 1.3% to 2,642.26 and Sydney\u2019s S&P-ASX 200 lurched down 2.3% to 7,197.40. New Zealand and Singapore also declined.<\/p>\n\n\n\n
Russia\u2019s war on Ukraine, high oil prices and global supply chain disruptions are adding to investor unease.<\/p>\n\n\n\n
Also Thursday, the Bank of England raised its benchmark rate to the highest level in 13 years, its fourth hike since December to cool British inflation that is running at 30-year highs.<\/p>\n\n\n\n
The S&P 500 fell 3.6% to 4,146.87, giving back Wednesday\u2019s 3% increase.<\/p>\n\n\n\n
The Dow Jones Industrial Average lost 3.1% to 32,997.97. The Nasdaq, dominated by tech stocks, slumped 5% to 12,317.69.<\/p>\n\n\n\n
The U.S. government was due to report employment numbers on Thursday, a closely watched data point.<\/p>\n\n\n\n
Economists at BNP Paribas still expect the Fed to keep hiking the federal funds rate until it reaches a range of 3% to 3.25%, up from zero to 0.25% earlier this year.<\/p>\n\n\n\n
Energy markets remain volatile as the conflict in Ukraine continues and demand remains high amid tight supplies of oil. European governments are trying to replace energy supplies from Russia and are considering an embargo. OPEC and allied oil-producing countries decided Thursday to gradually increase the flows of crude they send to the world.<\/p>\n\n\n\n
Benchmark U.S. crude gained 77 cents to $109.03 in electronic trading on the New York Mercantile Exchange. The contract rose 45 cents to $108.26 on Thursday. Brent crude, the price basis for international oil trading, advanced 75 cents to $111.65 per barrel in London.<\/p>\n\n\n\n
The dollar rose to 130.47 yen from Thursday\u2019s 130.40 yen. The euro gained to $1.0539 from $1.0519.<\/p>\n","protected":false},"excerpt":{"rendered":"
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